Buderus Announces Record Final Results for Full Year 1997/98 And Strong Preliminary Results for First Quarter 1998/99.

WETZLAR, Germany--(BUSINESS WIRE)--Feb. 3, 1999--Buderus Group AG, the Germany-based heating, cast iron and specialty steel products group, today announced final results for the fiscal year 1997/98 and preliminary results for the first quarter of 1998/99.

Profits rise to record levels for the sixth consecutive year

Buderus Group's pre-tax profits for 1997/98 rose to DM 267 million. Adjusted for the extraordinary profit from the sale of the Group Aircraft Equipment Division, profits increased by DM 27 million, or 11%, compared to the previous year.

DVFA/SG earnings per share increased by DM 1 to DM 49 compared to last year. For 1997/98, Group cash-flow amounted to DM 237 million, down by DM 13 million compared to the previous year due to lower special depreciation allowances.

Sales for 1997/98 up 5%

Buderus Group sales for the fiscal year 1997/98 reached approximately DM 3,400 million, up DM 155 million, or 5%, over the previous year. Once again, the Group's Heating Products Division contributed the greatest share, with 63% of total sales. Castings contributed 20% to Group sales, while Specialty Steel Products contributed 17%.

"Our historic levels of profit and revenue growth are the result of a consistent value-driven strategy. We have set clear financial targets which we are determined to meet through product leadership and penetration of new geographic markets," said Reinhard Engel, Member of Buderus' Management Board.

Dividend increase proposed

A proposed dividend payment increase of DM 1, to DM 19 per share, is planned. At the Annual General Meeting in March, the Board of Management and the Supervisory Board will propose to apply a total of DM 48 million out of Buderus<180> 1997/98 net profit of DM 95 million to dividend payments. The gross dividend, including tax credits, will amount to DM 27.14 per share.

"We will continue to use our excess cash flow to enhance returns. If we are not able to find an acquisition that meets our strict criteria, we will consider a share buy back program," said Reinhard Engel, Member of Buderus' Management Board.

1998/99 first quarter off to a strong start

Group Sales for the first quarter of 1998/99 are up 4%, or DM 32 million, to DM 918 million due to above-average foreign sales growth. While the Group experienced higher sales levels both at home and abroad, foreign sales are particularly strong due in part to the contribution of Deville Rectification S.A., purchased at the beginning of the financial year.

Pre-tax profits grew to DM 75 million, up DM 10 million or 15%, in the first three months of 1998/99.

Information on Buderus, a world leader in heating, specialty steel products and castings is available on Bloomberg under the symbol BUD GR and on Reuters under BUDG.O. Additional information is available on Buderus Group AG's home page: http://www.buderus.de.